Every bank has its own range of interest rates that they adhere to while sanctioning a loan. Before you approach a bank or an NBFC (Non-Banking Financial Company) for a personal loan, keep in mind the factors that are considered before deciding the EMI amount. As borrowers, we’re naturally inclined towards a lender with the lowest interest rate. But the interest rate of the loan amount is also decided on the past performance of the borrower. Let us discuss those factors in detail:
Having a high income gives you lower rate of interest. If your income starts at Rs 50,000 goes up to Rs 1,00,000 and above, then the lenders trust your repayment capacity and offer you a good interest rate. On the other hand, people with less income normally pay higher rate of interest. The interest rate bracket is extremely dynamic with the lowest being 12% and the highest 20% which is finally decided by the lender.
While viewing your application, CIBIL score is the first thing that the lenders check. A good CIBIL score gets you a loan easily and at a lower interest rate. But if you have a low CIBIL score, getting a loan becomes extremely difficult and even if you do manage to avail one, the rate of interest offered is high.
Relationship with the Lender
If you share a healthy financial relationship with the lender you will automatically qualify for a lower rate of interest. A lender will never want to lose out on a loyal customer with a good transaction history. So, to keep the customer happy, they will always offer a lower interest rate. This move is beneficial for both the borrower and the lender.
Apart from income flow and CIBIL score, the lender also looks at the job stability of the applicant. Frequent job changes reflect badly on the customer’s profile and can even affect the interest rate you get. Learn more about CIBIL Score only at Finserv MARKETS
Looking for a Personal Loan? With a high credit score, you can apply for a Bajaj Finserv Personal Loan available on Finserv MARKETS at the most competitive interest rates. What’s more? Your online personal loan comes with a host of benefits like flexible repayment options and hassle-free online application process etc. So why wait? Apply for a personal loan with us, today!
Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment, and exclusive EMI store, all under one roof- anytime, anywhere!